The first technical framework that carves out a path for Travel Rule compliance for services interacting with non-custodial wallets. The result of a partnership between AnChain.AI, a blockchain security company that specializes in AI-powered platforms and GlobaliD, the industry-leading self-sovereign identity provider, the PRIVATE framework bridges the gap between privacy and regulatory compliance.
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Travel Rule is a global regulatory compliance recommendation which applies as a requirement to VASPs in certain jurisdictions. It requires Virtual Asset Service Providers (“VASPs”) to share Personal Identifiable Information (“PII”) and Know-your-customer (“KYC”) data between each other when participating in a transaction on behalf of their customers.
When a transaction originates or terminates at an unhosted crypto wallet, compliance with the Travel Rules requires that the VASP collects KYC info about the owner of the wallet. The information collected from the VASP’s customer is recorded without verification. This oversimplification increases the opportunities for money laundering and other illicit activities which translates into a costly burden for all regulated ecosystem entities.
PRIVATE (Privacy Preservation through Resolution of Identity via Verification and Attestation for Travel Rule CompliancE) is a framework for VASPs to perform enhanced due diligence of transactions involving unhosted (non-custodial) wallets in compliance with the Travel Rule requirement.
PRIVATE enables verification of wallet ownership at three discrete levels of identity proofing: Bronze, Silver, and Gold. A wallet owner is incentivized to receive a credential of wallet ownership in exchange of providing their identity information (KYC). This information cannot be retrieved to discover the identity of a wallet owner. It can only be used by VASPs to attest the KYC information already provided.
PRIVATE enables risk assessment of transactions, identity verification of wallet owners while preserving their privacy in line with the tenets of data self-sovereignty.
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